Fly News Breaks for January 28, 2020
DLPH, BWA, AXL
Jan 28, 2020 | 10:28 EDT
Citi analyst Itay Michaeli believes that BorgWarner's (BWA) agreement to acquire Delphi Technologies (DLPH) is likely to increase investor focus on industry Powertrain consolidation, which means that American Axle (AXL) "could get another look from investors." His $13 price target on American Axle shares implies a mid-4 times EV/EBITDA multiple, whereas the implied multiple in the BorgWarner-Delphi transaction is 6.4 times 2019 adjusted EBITDA, or 5.2 times when synergies are factored, Michaeli tells investors. In terms of BorgWarner, he thinks the deal makes long-term strategic sense, but it comes at a high cost both financially and operationally.
News For AXL;BWA;DLPH From the Last 2 Days
Jan 20, 2021 | 07:41 EST
Deutsche Bank analyst Emmanuel Rosner added BorgWarner to the firm's "short-term Catalyst Call Buy List," as he believes the company's 2021 outlook could surprise positively, reflecting better than feared growth over market. He keeps a longer term fundamental Hold rating on the shares.